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Yoma posts 28.6% fall in Q1 profit, sees progress in Myanmar under new government
YOMA Strategic Holdings, which has real estate and investment businesses in Myanmar, on Tuesday posted a 28.6 per cent drop in net profit for fiscal first quarter on lower gross profit.
Net profit for the three months ended June 30, 2016, stood at S$1.83 million, compared to S$2.56 million a year ago.
Gross profit fell 31.5 per cent to S$6.81 million on weaker revenue. Sale of residences and land development rights plunged to S$3.05 million in the first fiscal quarter, compared to S$12.3 million a year ago. The decrease was due to the completion of buildings A3 and A4 in StarCity Zone A, as well as the group's decision to defer sales of properties in Pun Hlaing Estate until near-completion in order to achieve higher margins, Yoma said.
"Following the peaceful transition of power, the new civilian government of Myanmar has started work to address the country's priorities. A number of government committees have been formed to tackle the key issues around economic development, national reconciliation and peace," Yoma said.
"As the new government reviews and prioritises initiatives, some projects may face reviews and delays. However, with State Counsellor Daw Aung San Suu Kyi personally chairing some of these committees, the group is optimistic that good coordination and swift decisions can be made to effect positive progress."
Yoma separately said on Tuesday it has signed a new master lease for its Landmark Development in downtown Yangon. The retail, office, hotel and residential project is a partnership among Yoma and The Hongkong and Shanghai Hotels, Mitsubishi Corporation, Mitsubishi Estate, the International Finance Corporation, the Asian Development Bank and First Myanmar Investment Company.
Yoma will have a 48 per cent stake in the mixed-use development. Works are expected to begin by the end of this year.